The RET Review panel appointed by Prime Minister Tony Abbott has called for the closure of the renewable energy target to new entrants as one of two options it is recommending to the government.
It is also calling for the closure or rapid wind back of the small scale scheme, which supports rooftop solar and solar hot water. It says this scheme should either close now or by 2020. It says it should be restricted to installations of less than 10kW – effectively cutting out the commercial scale solar market.
As for the large scale scheme, the panel says the two options are effective closure to new entrants, or a form of modification to restrict it to a “real” 20 per cent of demand.
It suggests that the LRET could be modified to increase in proportion with growth in electricity demand, by setting targets one year in advance that correspond to just 50 per cent share of new growth. It says this approach would result in renewables making up a 20 per cent share of forecast electricity demand in 2020.
Targets would not be mandated for future years, exposing renewable energy investors to the same market risk (that future levels of electricity demand are unknown) that other investors in the sector currently face.